Air Berlin
Template:Short description Template:Use dmy dates Template:Infobox airline
Air Berlin plc & Co. Luftverkehrs KG (Template:FWB), branded as airberlin or airberlin.com (28 April 1979 – 27 October 2017), was a major German airline. At its peak, it was Germany's second-largest airline after Lufthansa, as well as Europe's tenth-largest airline in terms of passengers carried.<ref>Air Berlin Strategy and Business Model. Air Berlin, retrieved on 19 January 2011. Template:Webarchive</ref> It was headquartered in Berlin<ref>"Approach map Template:Webarchive." Air Berlin. Retrieved on 5 May 2010.</ref> and had hubs at Berlin Tegel Airport and Düsseldorf Airport. At the time of its insolvency, it was a member of the Oneworld airline alliance, having joined in 2012.
The airline was originally founded by American interests in 1978 to provide airline service to West Berlin, a territory that could not legally be served by West German airlines such as Lufthansa due to political restrictions on East German airspace. In 1991, shortly after German reunification, Air Berlin became a German-owned company and shifted its core business to compete more directly with Lufthansa, eventually becoming one of Germany's biggest airlines. After years of losses, however, Air Berlin filed for insolvency in August 2017<ref>Template:Cite news</ref> and ceased operations two months later.<ref>Template:Cite web</ref>
History
1978–1990: American charter airline in West Berlin
Template:Multiple image
Originally registered as Air Berlin USA,<ref name=fg80>Template:Cite journal</ref> the company was founded in 1978 as a wholly owned subsidiary of Lelco, an American agricultural enterprise headquartered in Oregon,<ref name=fg80/> to operate charter flights on behalf of German tour operators from Berlin Tegel Airport, mostly to Mediterranean holiday resorts.<ref name=fg80/><ref name=fg91>Template:Cite journal</ref>
The co-founders of Air Berlin USA were:
- Kim Lundgren, a former Berlin-based flight engineer of Pan American World Airways;
- John MacDonald, a former station manager of United States supplemental<ref group=nb>holder of supplemental air carrier certificate authorised to operate non-scheduled passenger and cargo services to supplement the scheduled operations of certificated route air carriers</ref> and charter airline Saturn Airways at Berlin Tempelhof Airport in the 1960s and subsequent general manager Europe and vice president at the Berlin Tegel Airport base of the former United States supplemental carrier and charter airline Modern Air from 1968 until 1974;
- Mort Beyer, Modern Air's executive vice president from 1967 until 1971 as well as the airline's president and vice president of the National Air Carrier Association<ref group=nb>the United States supplemental carrier industry association</ref> in 1971 and founder of United States aviation consultancy Avmark.<ref name="DT_ABStartUp">Template:Cite journal</ref><ref>Airways (Mailbag, Morten S. Beyer, 1922–2010), Vol. 17, No. 12, p. 61, Airways International Inc., Sandpoint, February 2011</ref><ref>Beyer, Morten S. Flying Higher: The Rosen Boys / Reorganizing Modern Air, 2009, pp. 180–182</ref><ref>Template:Cite journal</ref>
Lelco was the agriculture business of Kim Lundgren's family in the United States.<ref name="DT_ABStartUp"/>
As a United States airline, Air Berlin was able to access the West Berlin airline market. During the Cold War, Berlin's special political status meant that the air corridors into and out of Tegel Airport could only be used by airlines registered in France, the United Kingdom or the United States. The airline's headquarters were initially at Tegel Airport. Leonard Lundgren was the first chairman.<ref name=fg80/>
After the company was issued an airline licence and acquired two Boeing 707 jet airliners previously owned by Trans World Airlines, Air Berlin USA commenced revenue services on 28 April 1979 with a flight from Berlin-Tegel to Palma de Mallorca.<ref name=fg79>Template:Cite journal</ref><ref name="AB history">Template:Cite web</ref> Plans were made to start long-haul flights on West Berlin-Brussels-Florida routes,<ref name=fg79/><ref name=timetable81>Template:Cite web</ref> in cooperation with Air Florida (an agreement to that effect had been signed in February 1979).<ref name=fg81>Template:Cite journal</ref>
In 1980, two Boeing 737-200s were leased from Air Florida.Template:Citation needed In 1981, Air Berlin USA continued its weekly scheduled Boeing 707 service on the Berlin Tegel Airport - Brussels - Orlando route;<ref>Template:Cite web</ref> however, by 1982, the 707s had been phased out, and during most of the 1980s, Air Berlin USA operated only a single 737-200<ref name=fg84>Template:Cite journal</ref> or (from 1986) a 737-300.<ref name=fg89>Template:Cite journal</ref> In 1990 and 1991, two Boeing 737-400s were also placed into service.<ref name=fg91/><ref name=fg90>Template:Cite journal</ref>
1990–2000: New investors and expansion
German reunification led to significant changes to the European aviation market, and in particular in Berlin: German airlines now gained access to the city. In 1991, Air Berlin (which had 90 employees at the time)<ref>Template:Cite journal</ref> was restructured as Air Berlin GmbH & Co. Luftverkehrs KG, a German-registered company, with several German investors joining Kim Lundgren, the original founder, thereby bringing the ownership in line with German foreign-control requirements.<ref name="1992 737 order">Template:Cite journal</ref> Joachim Hunold (de), a former sales and marketing director with LTU International, now led the company.
Following an order for ten Boeing 737-800s, Air Berlin grew and by 1999, the fleet grew to twelve aircraft.<ref name=fg99>Template:Cite journal</ref> In 2001, Air Berlin and Hapag-Lloyd Flug became the first airlines in the world to have their Boeing 737-800s fitted with blended winglets, wingtip devices that are intended to improve fuel efficiency.<ref name=winglets>Template:Cite web</ref>
Air Berlin introduced scheduled flights (which could be booked directly with the airline rather than via a tour operator) in 1997, initially linking a number of secondary German airports to Mallorca.<ref name="AB history"/> By 2002, 35 percent of Air Berlin's tickets were sold directly.<ref name="AB lowcost expansion (2)">Template:Cite journal</ref> In the same year, the airline expanded beyond holiday destinations as low-fare flights marketed as "City Shuttle" to London, Barcelona, Milan and Vienna started.<ref name="AB history"/><ref name="AB lowcost expansion (2)"/> Besides Berlin-Tegel, these routes were opened at six German airports (Dortmund, Düsseldorf, Hamburg, Münster/Osnabrück, Nuremberg, and Paderborn/Lippstadt)<ref name="AB lowcost expansion (1)">Template:Cite journal</ref> that until then had not been served by one of the rising European low-cost carriers.<ref name="AB lowcost expansion (2)"/> In what later became a hallmark for Air Berlin as a "semi-low cost carrier", the airline offered complimentary meals and seat reservations,<ref name="AB lowcost expansion (1)"/> in contrast to its competitors Buzz, Hapag-Lloyd Express, Ryanair and Virgin Express.
2000–2006: Becoming Germany's second-largest airline
In November 2001, the delivery flight of a Boeing 737-800 fitted with winglets set a record: the aircraft with the registration code D-ABBC flew 8,345 kilometres non-stop from Seattle (Boeing Field), USA to Berlin (TXL), Germany in 9 hours, 10 minutes.Template:Citation needed
In January 2004, Air Berlin announced it would cooperate with Niki, a Vienna-based airline.<ref name="AB history"/> As part of the deal, Air Berlin took a 24% stake in Niki.<ref>Template:Cite news</ref>
In 2005, the Group reorganised its corporate structure. It established Air Berlin plc (registered in England) into which it reversed Air Berlin GmbH & Co. Luftverkehrs KG and subsidiaries.<ref>[1] Template:Webarchive Financial Statements 2003–2005 – see page 10</ref> It was suggested that the reason for the group to establish a UK-based PLC instead of a German-based AG was to avoid the need to have a supervisory board and employee representation as required by the German law of Mitbestimmung or co-determination.<ref>[2] German companies flee to the UK</ref>
In 2006, Air Berlin went public on the Frankfurt Stock Exchange. Originally scheduled for 5 May 2006, the IPO was postponed to 11 May 2006. The company said the delay was due to rises in fuel costs and other market pressures limiting investor demand. It reduced the initial share-price range from 15.0 to 17.5 euros to 11.5–14.5 euros. The stock opened at €12.0, selling a total of 42.5 million shares. Of these, 19.6 million were new shares increasing capital in the company, and the remainder to repay loans extended by the original shareholders and invested in the company earlier in 2006. After the IPO, the company claimed to have over 400 million euros in cash to fund further expansion, including aircraft purchases.<ref>Template:Cite web</ref>
In August 2006, Air Berlin acquired German domestic airline dba.<ref name="dba takeover">Template:Cite news</ref> Flight operations at dba were continued as a fully owned subsidiary of Air Berlin until 14 November 2008, when the dba brand was discontinued due to staff strikes (dba staff were subsequently offered positions with Air Berlin).
On 28 November 2006, Air Berlin ordered 60 Boeing 737-800 aircraft,<ref name="boeing order">Template:Cite news</ref> and 15 smaller Boeing 737-700 aircraft. The value of the 75 aircraft was 5.1 billion US dollars (based on list prices at the time.) Delivery of the aircraft started in 2007. All of these aircraft were equipped with blended winglets, to improve fuel efficiency.
2007–2012: Takeovers, expansion and new alliances
In March 2007, Air Berlin took over German leisure airline LTU, gaining access to the long-haul market and becoming the fourth-largest airline group in Europe in terms of passenger traffic. This deal led to the introduction of Airbus A321 and Airbus A330 aircraft into Air Berlin's fleet. On 1 May 2009, the LTU brand was discontinued.Template:Citation needed
On 7 July 2007, Air Berlin announced an order for 25 Boeing 787-8 Dreamliner long-haul aircraft, with further options and purchase rights.<ref>Template:Cite web</ref> Three additional aircraft of this type were to be leased from International Lease Finance Corporation.Template:Citation needed
On 21 August 2007, Air Berlin acquired a 49 percent shareholding in Swiss charter airline Belair, the remainder being owned by tour operator Hotelplan.<ref name="DK">Template:Cite news</ref> Following the deal, Belair's long-haul business was terminated, and the fleet was replaced by Airbus A320 family aircraft operating scheduled flights on behalf of Air Berlin as well as charter flights for Hotelplan. On 20 September 2007, Air Berlin announced it intended to buy its competitor Condor in a deal that envisaged Condor's owner, Thomas Cook Group, taking a 30% stake in Air Berlin.<ref name=condor>Template:Cite news</ref> However, the rapidly increasing price of jet fuel and other considerations led to the abandonment of the deal in July 2008.
In January 2008 Air Berlin introduced a new logo and corporate design. The logo is a white oval shape on a red background (suggesting an aircraft window) where the letter "a" is a white circle and two white stylised wings. The text "Air Berlin" was in lower case and written as one word. Sometimes the slogan "Your Airline" was featured as part of the logo.<ref>Airways (Qubein, R., The Two Faces of Air Berlin), Vol. 17, No. 9, pp. 35, Airways International Inc., Sandpoint, November 2010</ref> In June 2008, CEO Joachim Hunold offended Catalan language speakers, when he claimed<ref>Air Berlin Magazine Template:WebarchiveTemplate:In lang</ref> in an article included in Air Berlin's in-flight magazine that the government of the Balearic Islands was trying to impose the use of Catalan on Air Berlin flights from and to Majorca. He claimed that Air Berlin was an international airline and was not obliged to use Catalan. Hunold went on to criticise the language policy in Catalonia and the Balearic Islands, claiming that at the time many children could not speak any Spanish.<ref>Vilaweb, 5 June 2008. Template:WebarchiveTemplate:In lang</ref> The Balearic Islands' president, Francesc Antich, explained that his government had simply sent a letter to encourage airlines operating in the Balearic Islands to include Catalan among the languages used for onboard announcements.<ref>Vilaweb, 6 June 2008. Template:WebarchiveTemplate:In lang</ref>
On 18 June of the same year, Air Berlin announced that it would reduce its long-haul services by 13 percent and its domestic services by 10 percent to increase profitability.<ref>Business finance news – currency market news – online UK currency markets – financial news – Interactive Investor, Iii.co.uk, Retrieved on 15 December 2010.</ref> In September 2008, Air Berlin confirmed merger talks with competitor TUIfly, but added it was speaking with all parties. Air Berlin had, until 2007, been flying many code-share TUI flights. At the end of March 2009, Air Berlin PLC and TUI Travel PLC signed a deal by which their German flight businesses were to operate a long-term strategic alliance. Originally, each company was to take a 19.9% stake in the other and the German cartel authorities were petitioned for approval. After the Bundeskartellamt expressed concerns, the cross-ownership plan was not implemented. Instead, TUI Travel PLC purchased a 9.9% stake in Air Berlin PLC using a capital increase at a subsidiary to do so.<ref>Template:Cite web. Air-Berlin-Press Release, 7 October 2009.</ref>
At the end of March 2009, a strategic partnership agreement with TUI Travel was signed, with Air Berlin and its competitor TUIfly purchasing 19.9 percent of the other's shares.<ref>Template:Cite web</ref> Following the deal, Air Berlin took over all German domestic TUIfly routes, as well as those to Italy, Croatia and Austria. Also, all of Tuifly's Boeing 737-700 aircraft were added to Air Berlin's fleet. TUIfly was to abandon all scheduled flights and rely exclusively on the charter business.<ref>Template:Cite web</ref>
In March 2009, ESAS Holding A.S., a Turkish company, bought approximately 15 per cent of the voting shares in Air Berlin.<ref>Template:Cite web</ref> Also in 2009, Air Berlin added Hartmut Mehdorn to the board of directors after his retirement at Deutsche Bahn.<ref>Duo Infernale 2 July 2009</ref>
| Company | Interest |
|---|---|
| airberlin technik GmbH | 100 % |
| airberlin Holidays GmbH | Template:049 % |
| Belair | 100 % |
| Niki | 100 % |
In April 2010 Air Berlin expanded its codeshare arrangements with Russia's S7 Airlines. Air Berlin and S7 Airlines had cooperated since October 2008. New services included codeshare flights via Moscow to Irkutsk, Perm and Rostov.<ref>Template:Cite web</ref>
In July 2010, Air Berlin announced an increase in its shareholding in the Austrian airline Niki. Air Berlin indirectly acquired 25.9% of the shares in Niki from Privatstiftung Lauda (private Lauda foundation) and in doing so increased its shareholding in Niki from 24% to 49.9%. In connection with the increase of its shareholding, Air Berlin was to grant the private Lauda foundation a 40.5 million-euro loan. The private foundation had the options to repay the loan in three years with cash or through the transfer of the remaining 50.1% of Niki's shares.<ref>Air Berlin PLC / Increase in shareholding in Niki from 24% to 49.9% is completed</ref>
In July 2010, it was also announced that Air Berlin would join Oneworld, the global airline alliance.<ref>Template:Cite news</ref> In preparation for joining the alliance, Air Berlin made codeshare agreements with Finnair and American Airlines starting with the 2010/2011 winter schedule.<ref>Template:Cite web</ref> Air Berlin planned to operate an airline hub at Berlin Brandenburg Airport together with its Oneworld partners from the originally planned opening in 2012.<ref>Template:Cite web</ref> The delayed opening of the new airport made it difficult to operate a hub, as the infrastructure at Tegel was not designed for a hub.
Air Berlin founded Follow Me Entertainment GmbH in September 2010 as a joint venture with kick-media ag. This joint-venture company markets image and sound media, books, games as well as events, concerts, tournaments and sponsoring.<ref>Template:Cite web</ref>
On 1 April 2011 Air Berlin completed the integration of LTU. All Air Berlin Group technical services were consolidated in a new company called airberlin technik GmbH.<ref>Template:Cite web</ref> It also added new routes, more frequent flights and additional long-haul flights from Düsseldorf.<ref>Template:Cite web</ref> On 15 June 2011, Air Berlin and British Airways reached a codeshare agreement covering some flights within Europe, starting from 5 July 2011. The agreement applied to flights to over 40 European destinations served by the two airlines.<ref>Template:Cite web</ref> CEO Joachim Hunold resigned from his position on 1 September 2011 and was succeeded by the former CEO of Deutsche Bahn AG, Hartmut Mehdorn, who led the company on an interim basis until January 2013.<ref>Template:Cite news</ref>
In November 2011 Air Berlin and Pegasus Airlines (Turkey's largest private airline) launched Air Berlin Turkey, aiming at the charter market between Germany and Turkey. Pegasus Airlines is 16.5% owned by ESAS Holding AS.<ref>Cortal Unternehmensprofil auf cortalconsors.de.</ref><ref>Air Berlin und Pegasus mit neuem Produkt Template:Webarchive auf airliners.de 25. August 2011.</ref><ref>Template:Cite web</ref> The new airline was absorbed into Pegasus Airlines on 31 March 2013.Template:Citation needed In the third quarter of 2011, the turnover of the company amounted to 1.4 billion euros, an increase of 11%. However, operating profit decreased by almost 50% to around 97 million euros. As a result, a new bond to raise additional capital was issued.<ref>Template:Cite web</ref> In November 2011 Air Berlin took over the remaining 50.1% stake in NIKI as repayment of a loan and became its sole owner. The brand name was retained and Niki Lauda was given a position on the board of Air Berlin.<ref>Template:Cite web</ref>
Air Berlin announced on 19 December 2011 that Etihad Airways had increased its share of Air Berlin from 2.99% to 29.1%, for a sum of 73 million euros, making Etihad the company's largest shareholder.<ref name="Folgen des Etihad-Berlin-Deals">Template:Cite web</ref> The deal supplied more cash to Air Berlin, and provided Etihad access to Air Berlin's European network.<ref name="Folgen des Etihad-Berlin-Deals"/>
2012–2015: Restructuring amid continuing losses
The cooperation of the frequent-flyer programs topbonus and Etihad Guest was announced in March 2012.<ref>Air-Berlin-Press Release, 16 January 2012</ref> In June 2012, the collaboration concluded with the bonus programs airberlin business points and Etihad Airways Business Connect for SMBs.<ref>Template:Cite web</ref>
On 20 March 2012, the entry into Oneworld was officially completed.<ref>Template:Cite web</ref> The Oneworld network offered over 800 destinations in 150 countries.<ref>Template:Cite web</ref> At the same time, the airline introduced the Platinum status for its frequent-flyer program topbonus.<ref>Template:Cite web</ref> In May 2012 Air Berlin presented its new fare structure "Your Fare" including "Just Fly", "Fly Classic" and "FlyFlex" for flights from 1 July 2012.<ref>Template:Cite web</ref> On 11 May 2012 Air Berlin opened its triweekly non-stop flight from Berlin to Los Angeles in the summer schedule, a destination which until then had only been served from Düsseldorf.<ref>Template:Cite web</ref> On 18 December 2012 Air Berlin announced that topbonus, its frequent flyer program, would be sold to Etihad Airways; only a 30-percent minority share would be retained.<ref>Template:Cite web</ref> Air Berlin also announced the expansion of the existing codeshare agreement with Etihad Airways on 20 December 2012.<ref>Template:Cite web</ref>
In January 2013, the first Airbus A330-200 was introduced with a new business class which enabled a fully flat position for the first time.<ref name="business class">Template:Cite web</ref> On 7 January 2013 Air Berlin appointed Austrian Wolfgang Prock-Schauer, former Chief Strategy and Planning Officer, as the company's CEO, replacing Hartmut Mehdorn.<ref>Template:Cite web</ref>
Air Berlin started flights between Berlin and Chicago on 23 March 2013. It cancelled the seasonal non-stop flights to Las Vegas, San Francisco and Vancouver.<ref>Template:Cite web</ref> In March 2013 Air Berlin announced the closure of its seasonal hub for leisure destinations at Nuremberg Airport. Only ten year-round direct routes remained.<ref>Template:Cite web</ref>
On 24 September 2014, Air Berlin cancelled the remaining 15 orders for their Boeing 787s as well as 18 remaining orders for Boeing 737-800s as part of their restructuring programme.<ref>Template:Cite web</ref> In October 2014, the Luftfahrt-Bundesamt denied Air Berlin authorization to operate 34 routes as a codeshare with co-owner Etihad from the 2014/2015 winter schedule as they would contravene the bilateral traffic rights between Germany and the UAE.<ref>Template:Cite web</ref> Also in October 2014, Air Berlin announced the termination of flights to Palma de Mallorca from both Bremen Airport and Dortmund Airport, therefore withdrawing entirely from these two German airports.<ref>Template:Cite web</ref>
Air Berlin announced a net loss for 2014 of €376m (€316m loss in 2013). The airline's revenues in 2014 stagnated at €4.16 billion.<ref name="2014 report"/><ref>Template:Cite web</ref>
In September 2015, Air Berlin phased out the last Boeing 737-700s owned by the company. The remaining aircraft of this type would operate on a wet lease basis from TUIfly until 2019. All Boeing 737-800s were to be phased out by 2016 as Air Berlin plans to focus their short- and medium-haul fleet on the Airbus A320 family to cut costs.<ref name="aero.de-737">aero.de – "Air Berlin phases out last own 737-700" (German) 28 September 2015</ref> In November 2015, Air Berlin announced the closure of its Palma de Mallorca Airport hub by ceasing all of the hub's seven Spanish domestic routes by 3 April 2016.<ref>mallorcazeitung.es – Air Berlin verzichtet auf Drehkreuz Mallorca ("Air Berlin waives Mallorca hub") (German) 16 November 2015</ref><ref name="PMIshutdown">airliners.de – "Air Berlin shuts down Mallorca hub" (German) 18 November 2015</ref> Some days earlier, the airline announced plans to add flights from Düsseldorf to Boston, Dallas/Fort Worth, San Francisco and Havana by spring 2016.<ref>aero.de – Pichler: Air Berlin ist auf dem Weg zu einer Netz-Airline ("Pichler: Air Berlin becoming a network airline") (German) 11 November 2015</ref> However, the planned route to Dallas/Fort Worth was cancelled a few weeks later due to low demand.<ref>aero.de – "Air Berlin cancels Dallas route" (German) 28 January 2016</ref> On 30 December 2015, the administrative court in Braunschweig ruled in favour of the German civil aviation authority (the Luftfahrt-Bundesamt) and against Air Berlin regarding some of their codeshare operations with Etihad Airways. The shared sale and advertising of 31 out of 83 routes which were marketed by both were declared illegal and ordered stopped by 15 January 2016 as they were not covered by the bilateral air-traffic agreement between Germany and the UAE. The Luftfahrt-Bundesamt had allowed these flights until a definite legal ruling was made.<ref>aero.de – Gericht verbietet weiterhin Gemeinschaftsflüge von Air Berlin ("court forbids shared flights of Air Berlin") (German) 30 December 2015</ref>
2016–2017: Restructuring efforts
In April 2016, Air Berlin announced a record loss of €446 million for 2015; the airline's revenues had decreased to €4.08 billion.<ref name="2015 report"/> Amongst the reasons considered for Air Berlin's poor performance were: crippling debt of over €800m; unclear and rapid strategy changes on routes and advertising; several CEOs over recent years; a five-year-plus delay to the new hub Berlin Brandenburg Airport; failed negotiations to profit from lower fuel prices and the overall harsh competition in the airline industry.<ref name="spiegelmay">spiegel.de – "Air Berlin runs out of air" (German) 11 May 2016</ref> In July 2016, Air Berlin confirmed that it no longer owned any of the aircraft it operates, having sold and leased back the last of the aircraft it had previously owned.<ref>Template:Cite web</ref> A few weeks later it was reported that Air Berlin and Etihad Airways were in talks with Lufthansa regarding the latter's acquisition of some of Air Berlin's routes outside of the Berlin and Düsseldorf hubs as well as some staff and aircraft leases.<ref>Template:Cite web</ref> Also in July 2016, Air Berlin announced the increase of flights to the United States from 55 to 78 nonstops per week for 2017. Besides some frequency increases, Los Angeles and San Francisco were to be served from Berlin as well as by the then existing Düsseldorf routes. And a new Düsseldorf-Orlando route was announced.<ref>aero.de – "Air Berlin with significantly more US flights in summer 2017" (German) 2 August 2016</ref> A few days later, the airline announced the introduction of a business class on its short- and medium-haul flights.<ref name="newbusinessclass"/>
In December 2016, Air Berlin announced Stefan Pichler's departure after serving two years as CEO and replacement by former head of Germanwings, Thomas Winkelmann on 1 February.<ref>Template:Cite news</ref>
The "new Air Berlin" project
On 28 September 2016, Air Berlin announced The new airberlin, a restructuring project including the reduction of its destinations from around 140 to 70, the focus on the Berlin and Düsseldorf hubs and on the smaller bases in Stuttgart and Munich, the closure of six other bases, the targeting of business travellers, focus on domestic German flights and on flights to Italy, Scandinavia and eastern Europe, the expansion of its long-haul network, and the loss of up to 1,200 jobs.<ref name="officialpressrelease">Template:Cite web</ref>
Air Berlin, including its subsidiaries Belair and Niki, planned to cut 40 of its fleet of 118 narrowbody jets, leaving Air Berlin with its own fleet of 75 aircraft. The new fleet would be 17 Airbus A330-200 for long-haul operations and 40 Airbus A320 family aircraft and 18 Bombardier Q400 aircraft for European routes.<ref name="officialpressrelease"/><ref>Template:Cite web</ref> A separate, tourist-destination-oriented unit with 35 aircraft was to be formed, perhaps operating with a partner (TUIfly was the assumed partner as they already operate several aircraft for Air Berlin)<ref>Template:Cite web</ref> – or sold altogether.<ref name="officialpressrelease"/> Plans to wet lease the remaining aircraft were realised with the December 2016 announcement that 38 Airbus A319/A320 aircraft would be wet leased to Lufthansa Group's Eurowings (33 aircraft) and Austrian Airlines (five), effective February 2017 for a period of six years.<ref>Template:Cite news</ref>
In October 2016, Air Berlin announced plans to close four of its seven airberlin Technik maintenance facilities and lay off 500 of their staff.<ref name="abtechnikshutdown">rbb-online.de – "Air Berlin wants to cancel nearly 500 staff nationwide" (German) 14 October 2016</ref> On 5 December 2016, Air Berlin announced plans to sell its entire 49-percent stake in its Austrian subsidiary Niki to its own minority owner, Etihad Airways.<ref name="nikisale">aero.de – "Air Berlin separates Niki and A321-fleet" (German) 5 December 2016</ref><ref name="nikisale2"/> It was also announced that Niki will take over several routes to southern European, north African and Turkish leisure destinations from Air Berlin as part of the new joint-venture.<ref name="nikisale2">austrianaviation.net – "Finalized: Air Berlin sells Niki to Etihad" (German) 5 December 2016</ref> Also in December 2016, Air Berlin announced the transfer of its entire fleet of 21 A321-200s to Niki and Niki's transfer of all its 5 A319-100s and 13 A320-200s to Air Berlin.<ref name=ch051216/> Air Berlin would discontinue its wet lease with TUIfly.<ref name=ch051216>Template:Cite web</ref>
In January 2017, Air Berlin announced that for summer 2017, most leisure routes were to be either transferred to Niki or cancelled altogether and that some domestic and European city routes were to be dropped, leaving little more than the Berlin-Tegel and Düsseldorf hub operations.<ref>Template:Cite web</ref> On 28 April 2017, a loss of € −781.9 million was announced for 2016, from a revenue of €3.79 billion.<ref name="2016 report">Template:Cite web</ref> Also in late April 2017, Air Berlin confirmed the creation of Air Berlin Aeronautics GmbH, a new subsidiary which was to have its own operational licence (AOC) to take over the wet lease operations handled by Air Berlin on behalf of Eurowings and Austrian Airlines. Therefore, the "actual" Air Berlin would focus on operations under its own brand name.<ref name="abaeronautics">austrianaviation.net – "Air Berlin Aeronautics takes over EW/OS wetleases" (German) 30 April 2017</ref> In May 2017, Air Berlin announced it would buy Luftfahrtgesellschaft Walter entirely, in which it had a controlling stake since 2009.<ref>austrianaviation.net – "Air Berlin takes over Luftfahrtgesellschaft Walter" (German) 25 May 2017</ref>
Bankruptcy
After Etihad stopped financial support, Air Berlin entered insolvency procedures on 15 August 2017.<ref>Template:Cite news</ref> On 9 October 2017, Air Berlin told its staff that it would cease all remaining operations under its own AB flight numbers due to its negative financial outlook and bankruptcy proceedings.<ref name="ABshutdown">aero.de – "Air Berlin starts descent" (German) 9 October 2017</ref> On 12 October 2017, Lufthansa Group agreed to buy 81 aircraft and employ 3,000 Air Berlin employees for €210 million, taking over the subsidiaries Niki and Luftfahrtgesellschaft Walter with a total of 1700 employees. On 24 October 2017, the Berliner Zeitfracht Group confirmed it would take over the Leisure Cargo Düsseldorf company and its 60 employees. The creditors' committee approved a corresponding submission. Leisure Cargo conveys freight space on passenger flights.<ref>[3] Letzter Versuch für Auffanggesellschaft bei Air Berlin, 24 October 2017</ref> On 27 October 2017, it was announced that a 'consortium' of maintenance, repair, and operations provider Nayak Aircraft Services GmbH & Co. KG and Berliner Zeitfracht Group would purchase airberlin Technik, keeping over 300 employees.<ref>Template:Cite web</ref>
The final long-haul flight, from Miami to Düsseldorf, was operated on 15 October 2017.<ref name="lap of honour">Template:Cite news</ref> On 27 October 2017, Air Berlin's final flight was operated by Airbus A320 D-ABNW. It departed from Munich at 21:36 and landed at Berlin Tegel at 22:45.<ref>Template:Cite web</ref> On 28 October 2017, it was announced that EasyJet would absorb 1,000 employees and lease 25 Airbus A320 aircraft for flights from Berlin Tegel for €40 million.<ref>Template:Cite web</ref>
Just over six years after filing for bankruptcy and ceasing all flight operations, Air Berlin's trademark rights were sold to Marcos Rossello, noting that he does not plan on mixing Air Berlin into a new branding for his own existing Sundair.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
Corporate affairs
Head office
The airline was headquartered at the Airport Bureau Center in Charlottenburg-Wilmersdorf, Berlin.<ref>"Approach map Template:Webarchive" (Archive). Air Berlin. Retrieved on 5 May 2010. The name "Airport Bureau Center" appears in an image.</ref>
Flight school
Air Berlin trained its own pilots since 2007 in a joint venture with the TFC Käufer flight school. Commercial pilot training lasted around 24 months. The Air Berlin flight school was the first flight school in Germany to be awarded a training licence by the German Department of Aviation for the new Multi-Crew Pilot Licence concept in February 2009.<ref>airberlin flightschool.</ref>
Technical services
Air Berlin had its own maintenance and overhaul branch, airberlin technik with facilities in Berlin, Düsseldorf, Munich, Stuttgart, Frankfurt, Hamburg, and Nuremberg, which employed 1300 staff as of October 2016.<ref name="abtechnikshutdown"/> The technical branch was a certified EASA Part-145 maintenance organization with approximately 1200 employees providing services to both Air Berlin group aircraft and customers throughout Europe. airberlin technik was recognized and approved by various National Airworthiness Authorities such as USA FAA-145, Canadian CAA-145, Aruba EASA-145, Federal Aviation Authority of Russia, GCAA, United Arab Emirates.<ref>airberlin technik. Template:Webarchive</ref> In October 2016, Air Berlin announced it would close the technical bases in Stuttgart, Frankfurt, Hamburg and Nuremberg while laying off 500 staff due to restructuring measures.<ref name="abtechnikshutdown"/>
Ownership
Air Berlin PLC shares were publicly traded on Xetra and on the Frankfurt Stock Exchange in the regulated market. Trading in the regulated unofficial market occurred at the exchanges in Berlin, Düsseldorf, Hamburg, Munich and Stuttgart.<ref name="Report">Template:Cite web</ref> Since December 2011, Etihad Airways was the largest shareholder in Air Berlin. As of December 2015, the major shareholders (over 5%) were:<ref name="2015 report"/>
| Name | Interest |
|---|---|
| Etihad Airways PJSC | 29.21% |
| ESAS Holding AS (owners of Pegasus Airlines) | 12.02% |
| Other shareholders | 58.77% |
| Total | 100.00 % |
Business trends
Air Berlin was loss-making for several years. The key figures for the whole Air Berlin Group (including Niki) for the full years of operation leading up to its closure were (as at year ending 31 December):
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Turnover (€m) | 1,575 | 2,537 | 3,401 | 3,240 | 3,850 | 4,227 | 4,312 | 4,147 | 4,160 | 4,081 | 3,785 |
| Net profit (€m) | 40.1 | 21.0 | Template:Color | Template:Color | Template:Color | Template:Color | 6.8 | Template:Color | Template:Color | Template:Color | Template:Color |
| Number of employees | 4,108 | 8,360 | 8,311 | 8,278 | 8,900 | 9,113 | 9,284 | 8,905 | 8,440 | 8,869 | 8,481 |
| Number of passengers (m) | 19.7 | 27.9 | 28.6 | 27.9 | 34.9 | 35.3 | 33.3 | 31.5 | 31.7 | 30.2 | 28.9 |
| Passenger load factor (%) | 75.3 | 77.3 | 78.4 | 77.5 | 76.8 | 84.5 | 83.6 | 84.9 | 83.5 | 84.2 | 84.3 |
| Number of aircraft (at year end) | 117 | 124 | 125 | 152 | 169 | 170 | 155 | 140 | 149 | 153 | 144 |
| Notes/sources | <ref>Template:Cite web</ref> | <ref>Template:Cite web</ref> | <ref>Template:Cite web</ref> | <ref>Template:Cite web</ref> | <ref>Template:Cite web</ref> | <ref name="2011 report">Template:Cite web</ref> | <ref name="2012 report">Template:Cite web</ref> | <ref name="2013 report">Template:Cite web</ref> | <ref name="2014 report">Template:Cite web</ref> | <ref name="2015 report">Template:Cite web</ref> | <ref name="2016 load factor">Template:Cite web</ref> |
Destinations
Prior to its shutdown, Air Berlin flew to scheduled year-round and seasonal destinations in Europe. Intercontinental services were provided to cities in North and Central America, North Africa and the Caribbean.<ref>airberlin.com – Flightplan Template:Webarchive retrieved 24 March 2017</ref>
Codeshare agreements
Air Berlin maintained codeshare agreements with the following airlines:<ref name="CAPA AB profile">Template:Cite web</ref> Template:Div col
- Air Serbia
- Air Seychelles
- airBaltic
- Alitalia
- American Airlines
- Austrian Airlines
- Bangkok Airways
- British Airways
- Bulgaria Air
- Czech Airlines
- Darwin Airline
- Etihad Airways
- Eurowings
- Finnair
- Flybe
- Hainan Airlines
- Iberia
- Japan Airlines
- Jet Airways
- Lufthansa
- Meridiana
- Niki
- Pegasus Airlines
- Royal Jordanian
- S7 Airlines
- SriLankan Airlines
- Swiss International Air Lines
- Virgin Australia
Fleet
Fleet at closure
Prior to closure, the Air Berlin's fleet comprised the following aircraft:Template:Citation needed
| Aircraft | In service | Passengers | Notes | ||
|---|---|---|---|---|---|
| C | Y | Total | |||
| Airbus A319-100 | 11 | 4 | 146 | 150 | Leased to Eurowings |
| Airbus A320-200 | 64 | — | 165 | 165 | 21 leased to Eurowings |
| 4 | 176 | 180 | |||
| Airbus A330-200 | 17 | 19 | 271 | 290 | |
| Bombardier Dash 8 Q400 | 20 | 3 | 70 | 73 | Operated by LGW |
| Total | 112 | ||||
Historic fleet
During its 40 years of operation, Air Berlin operated the following aircraft types:Template:Cn
| Aircraft | Total | Introduced | Retired | Notes |
|---|---|---|---|---|
| Airbus A319-100 | 21 | 2006 | 2017 | Operated for Eurowings. |
| Airbus A320-200 | 117 | 2005 | 2017 | 10 acquired from LTU. 17 operated for Eurowings. 4 operated for Austrian Airlines. 27 purchased by Lufthansa. 25 transferred to easyJet. |
| Airbus A321-200 | 23 | 2008 | 2017 | 4 acquired from LTU. |
| Airbus A330-200 | 17 | 2008 | 2017 | 8 acquired from LTU. 6 leased by Malaysia Airlines. 10 sold to other airlines. 1 stored in LDE. |
| Airbus A330-300 | 3 | 2008 | 2013 | Acquired from LTU. |
| Template:Nowrap | 3 | 2003 | 2004 | |
| Boeing 707-123 | 1 | 1980 | 1980 | Operated by Air Berlin USA. |
| Boeing 707-321 | 1 | 1981 | 1981 | |
| Boeing 707-331 | 3 | 1979 | 1981 | |
| Boeing 737-200 | 5 | 1980 | 1986 | Operated by Air Berlin USA. |
| Boeing 737-300 | 1 | 1986 | 1990 | Operated by Air Berlin USA. |
| 10 | 2007 | 2010 | Operated by Germania. | |
| Boeing 737-400 | 13 | 1990 | 2007 | |
| Boeing 737-700 | 32 | 2003 | 2017 | Operated by TUI fly Deutschland. |
| Boeing 737-800 | 100 | 1998 | 2017 | Last remaining active fleet was operated by TUI fly Deutschland. |
| Bombardier Dash 8 Q400 | 20 | 2008 | 2017 | Operated by LGW. |
| Embraer 190 | 3 | 2013 | 2013 | Transferred from Niki and subsequently returned, then operated by LGW. |
| Fokker 100 | 18 | 2004 | 2010 | |
| Total | 391 |
Services
Aircraft cabins
Long-haul flights
Air Berlin long-haul aircraft featured business and economy class sections. At the beginning of 2012, Air Berlin started the renewal of its long-haul cabin, equipping both economy class and business class with new seats and a new in-flight entertainment system. Fully automatic seats that could tilt up to 170 degrees were provided in business class, along with an anti-thrombosis edition and an adjustable headrest, and more legroom and a narrower seat back in economy class. All seats have an 8.9-inch monitor with a touch screen and offer movies, series, music, audiobooks and games.<ref>Template:Cite web</ref> In January 2013 the airline again presented a new business class which replaced the one introduced a year earlier. The new business class had single seats, offering travellers even more privacy. The new seats had a full-flat function, a massage function, and featured a 15-inch monitor.<ref name="business class" />
Short- and medium-haul flights
Business class was not offered on its short- and medium-haul flights until Air Berlin announced its introduction in August 2016. All short- and medium-haul aircraft began to feature business class in row 1 with expanded services including an empty middle seat.<ref name="newbusinessclass">airliners.de – "Air Berlin introduces business class on short- and medium-haul flights" (German) 5 August 2016</ref>
Passenger services
In contrast to European pure low-cost carriers, Air Berlin offered free in-flight snacks and drinks until September 2016.<ref>Template:Cite web</ref> Newspapers and magazines were available on domestic German flights.<ref>Template:Cite web</ref> Full hot meals were complimentary on long-haul flights. On all Air Berlin routes with a flight time of 60 minutes or longer, gourmet meals were offered, which were, according to the airline, created by chefs at "Sansibar", a famous restaurant on the island of Sylt. The airline also offered in-flight entertainment, assigned seating and guaranteed flight connections.<ref>Template:Cite web</ref> Air Berlin's basic fares were nonrefundable and not changeable, so unused flights were a complete loss for the purchaser.
Frequent flyer program
Air Berlin's frequent flyer program was called topbonus. Points, known as miles, could be collected on flights operated by Air Berlin, Niki, Oneworld airline partners, and selected other airlines. Accrued miles could be redeemed for award flights, or for an upgrade to business class. In addition to the entry-level "topbonus Card Classic" there were cards with Silver, Gold, and Platinum status, corresponding to Oneworld Ruby, Sapphire, and Emerald statuses. A Service Card and a Credit Card, for which a charge was made, were also available. Etihad Airways purchased a 70% stake in topbonus for €184 million in 2012. Following the insolvency of Air Berlin, topbonus also filed for insolvency on 25 August 2017.<ref>Template:Cite news</ref>
See also
Notes
- Notes
Citations
References
Bibliography
- Template:Cite book
- Template:Cite journal (various backdated issues relating to Air Berlin, 1979–2007)
- Template:Cite journal
External links
Template:Commons category-inline
Template:Portal bar Template:Navboxes Template:Authority control
- Pages with broken file links
- Air Berlin
- Defunct airlines of Germany
- Airlines established in 1978
- Airlines disestablished in 2017
- German companies disestablished in 2017
- Defunct airlines of the United States
- 1978 establishments in West Germany
- 2017 disestablishments in Germany
- Companies based in Berlin
- German brands
- Aviation in Berlin
- European Low Fares Airline Association
- Former Oneworld members
- Etihad Airways Partners